• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME-19-1131-BC
      • Effective Date
      • 18 October 2019
    • FILE NO.:

      CME 19-1131-BC

      NON-MEMBER:

      Summit Feeders LLC

      CME RULE VIOLATION:

      Rule 562. Position Limit Violations

      Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.

      FINDINGS:

      Pursuant to an offer of settlement in which Summit Feeders LLC (“Summit”) neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on October 16, 2019, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on May 22, 2019, Summit held a futures equivalent long position of 319 May 2019 Feeder Cattle futures contracts, which was 19 futures contracts (6.47%) over the spot month position limit in effect. Summit liquidated its overage position, resulting in profits of $10,415. The Panel concluded that Summit thereby violated CME Rule 562.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Summit to pay a fine of $15,000 and disgorge profits in the amount of $10,415.

      EFFECTIVE DATE:

      October 18, 2019